“Contrats de Generation” was passed on March 1, 2013, and went into effect on March 15, 2013.  

Objectives

  • Facilitate employment of young people. 
  • Facilitate the hiring and continued employment of employees more than 55 years old. 
  • Guarantee the transmission of knowledge and skills between generations.  

Field of Application

All companies in the private sector and in the public sector but limited to the industrial and commercial establishments.

Obligations for Employers

  1. Companies with more than 300 employees:
  • Companies of 300 or more employees must have a specific collective agreement or, at the very least, an action plan to comply with the new law. 
  • The agreement must be planned for three years. 
  • It must contain certain provisions promoting the long-term employment of young people, with their training, including knowledge and skills being undertaken by older employees. 
  • These measures must respect sex equality, equal opportunities, treatment and diversity.
  • Prior to the collective agreement or the action plan, a diagnosis must be done showing the age pyramid, the features and the development of young and old employees, and planned retirements.
  • Failing to comply with this law before September 10, 2013, could lead to a fine of one percent of the company’s payroll. 
  • No help will be available for these companies.
  1. Companies with 50-300 employees:
  • They are not subject to any obligations to negotiate with staff representatives, but they can voluntarily implement such provisions via an agreement or an action plan. In that case, they will receive government assistance.
  1. Companies with less than 50 employees:
  • They are not subject to this law, but if they wish to participate voluntarily, they will receive government assistance without a formal agreement.

Conditions for Receiving Financial Assistance

Companies must meet two cumulative conditions.

  1. Giving a full-time contract to a person under 26 years old or under 30 years old who is registered as disabled. 
  2. Maintain the employment of a person over 57 years old at the time of being hired or over 55 years old if the person is registered as disabled.
  • The financial assistance will consist of €4,000 per year during three years for each time the conditions above are not met. 
  • The assistance will be lost notably in the case of redundancy, voluntarily or not, or dismissals except when there is gross misconduct and if there was redundancy within the six months prior to the hiring. 
  • To benefit from this assistance, a request must be sent to “Pôle Emploi” (Department of Labor) within three months of each hiring.